Subject: Follow-up From: Nadean Novogratz ‹ > Date: Thu, 26 Jul 2018 17:01:05 -0400 To: Paul Barrett Cc: Martin Zeman Stewart Oldfield Xavier Avila Davide-A Sferrazza Devin Anderson Hi Paul, Great to meet you over the phone today and discuss our derivatives offerings / market color. As mentioned, Southern Financial is fully onboarded to trade OTC equity derivatives here. We've reviewed our docs for listed options and just need 2 simple forms completed (attached). They are pretty straight forward but we're here to answer any questions on them that you have. Per Devin's comments on short-term upside, below are charts that compare SPY ATM vs 2% out of the money upside in the near-term experies. Vols are in the 8v range for the 2% OTM calls and as you can see for the next four weeks term structure is flat. We've continued to see the spot up / vol up correlation remain positive and if this theme continues, now is a good entry level into buying inexpensive vol. SPY ATM Calls: SPY 2% Upside Calls: Kind regards, Nadean EFTA01422069